There are many decisions that you have to make as a trader. One of the most important is not really the asset that you trade or even the trades you put on, it is the broker that you decide to trade with.
This is important for a number of different reasons. The broker is the gatekeeper to the spreads which means the returns which you can realistically expect to spend. They also control whether you can easily withdraw your funds and access them.
However, when you look for a broker it can be quite involved and you may be overwhelmed with the extensive range of options at your fingertips. How can you decide whether a broker is indeed a good option and that you are not being lied to.
That is through the help of honest broker reviews on a number of sites. These sites help you to determine whether you will indeed have a positive experience with the broker. Yet, it is not just about reading one review and using that as your benchmark for whether to invest. You also have to do your own due diligence.
Is it Regulated?
This is probably one of the most important considerations when it comes to choosing a broker. Without regulation you have very little protection against any unsavoury practices from the broker.
It is important to also consider where the broker is regulated. Some regulatory agencies are nothing more than a mere rubber stamp. They would not afford you too many protections from the brokers.
If you wanted more information on IQ Option, you can find it on this Broker review of IQ Option .
What are the Withdrawal Policies
Nothing is more frustrating for a trader when they are not allowed to withdraw any of the profits because the broker has some weird rules that the trader did not know about.
Before you make any deposits ask the broker to send you terms and conditions that apply to their policies. You should read all the fine print and make sure that you understand it to the best of your knowledge.
When you are trading with the broker, one of the most important points to consider is the platform that you are going to be using. This is, after all, directly tied to the tools that you can use. It is really important to have the most effective charting tools.
You also want to have other helpful things on offer at the platform that can guide you through the process of trading the instruments. This includes videos that help you with your trading strategy as well as simple guidelines to strategies.
It also helps to know if the broker has tools for technical analysis charting. These include such indicators as the candlestick and bollinger bands. It also helps to have other analysis feeds that you can use to conduct more in depth research into the asset you are considering trading. These include economic candles and ratio analysis for fundamental factors.
Range of Assets on Offer
When choosing a broker, you want to make use of one that has an extensive range of assets for you to choose from. These should range from simple CFDs and options to cryptocurrency and other more exotic options.
You don’t want to limit your choices when it comes to the best trading strategies. The top brokers in the world will offer you quite an extensive range of products to trade as well as the right tools in order to trade them.
When it comes to choosing a broker, it really helps if that broker is receptive to your questions and more than happy to help you out with any questions you may have with respect to support and trading advice.
Some brokers will give you the benefit of a line that you can call and speak to a service representative. Others, while not having the benefit of a phone line, will provide you with a dedicated chat as well as an email address.
Spreads and Profits
Of course, we save the best for last. The profits that you can earn from the broker are no doubt really important. As such, you need to make sure that the broker has some reasonable spreads and that you are not paying unnecessary fees.
The spread is directly what will impact on your bottom line but there are a range of other fees which may really hamper your trading experience. One of these is certain “inactivity” fees. These are nothing more than a joke which brokers try to use as an excuse to grab as much from your account as possible.
Before you start trading, ask the broker for a list of all the fees that you could be expected to pay. These are usually displayed prominently on the broker page but the other fees that the broker may charge are not there. Make sure you can spot these.